Revenue growth reached 7.0% by 2025Q4, though gross margins have compressed to 65.6% from historical peaks near 71%, suggesting ongoing pricing pressure.
| Metric | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 6.18B | 5.81B | 5.55B | 5.21B | 5.21B | 4.56B | 5.14B | 4.9B | 4.76B | 4.67B | 4.63B | 4.62B | 4.35B | 4.14B | 4.27B | 3.96B | 3.77B | 3.8B | 3.37B | 2.78B | 2.55B | 2.39B | 2.11B | 1.79B | 1.58B | 1.69B | 1.81B | 1.75B | 1.73B | 1.83B |
| Revenue Growth % | 6.34% | 4.7% | 6.4% | 0.06% | 14.3% | -11.25% | 4.77% | 2.92% | 2.06% | 0.76% | 0.37% | 6.11% | 5.17% | -3.11% | 7.77% | 5.04% | -0.76% | 12.82% | 21.23% | 8.89% | 6.57% | 13.75% | 17.76% | 13.49% | -7.06% | -6.45% | 3.61% | 0.92% | -5.37% | 15.46% |
| Cost of Goods Sold | 1.98B | 1.76B | 1.73B | 1.54B | 1.54B | 1.4B | 1.34B | 1.3B | 1.25B | 1.27B | 1.14B | 1.16B | 1.1B | 1.07B | 1.14B | 1.03B | 1.03B | 1.08B | 994M | 769M | 701M | 642.17M | 616.25M | 531.63M | 509.96M | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | 31.99% | 30.36% | 31.18% | 29.53% | 29.6% | 30.61% | 26.04% | 26.47% | 26.19% | 27.24% | 24.67% | 25.17% | 25.28% | 25.86% | 26.7% | 26.02% | 27.31% | 28.33% | 29.5% | 27.67% | 27.47% | 26.82% | 29.27% | 29.74% | 32.37% | - | - | - | - | - |
| Gross Profit | 4.2B | 4.05B | 3.82B | 3.67B | 3.67B | 3.16B | 3.8B | 3.61B | 3.52B | 3.4B | 3.49B | 3.46B | 3.25B | 3.07B | 3.13B | 2.93B | 2.74B | 2.72B | 2.38B | 2.01B | 1.85B | 1.75B | 1.49B | 1.26B | 1.07B | 1.69B | 1.81B | 1.75B | 1.73B | 1.83B |
| Gross Margin % | 68.01% | 69.64% | 68.82% | 70.47% | 70.4% | 69.39% | 73.96% | 73.53% | 73.81% | 72.76% | 75.33% | 74.83% | 74.72% | 74.14% | 73.3% | 73.98% | 72.69% | 71.67% | 70.5% | 72.33% | 72.53% | 73.18% | 70.73% | 70.26% | 67.63% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | 3.85% | 5.94% | 3.92% | 0.16% | 15.96% | -16.74% | 5.38% | 2.53% | 3.53% | -2.69% | 1.04% | 6.28% | 6% | -2.01% | 6.79% | 6.89% | 0.66% | 14.69% | 18.16% | 8.59% | 5.62% | 17.7% | 18.54% | 17.92% | -37.15% | -6.45% | 3.61% | 0.92% | -5.37% | 15.46% |
| Operating Expenses | 3.2B | 3.39B | 3.39B | 3.23B | 3.08B | 2.87B | 2.98B | 2.74B | 2.58B | 2.6B | 2.86B | 2.71B | 2.44B | 2.22B | 2.27B | 2.01B | 2.02B | 2.08B | 1.77B | 1.45B | 1.34B | 1.28B | 1.09B | 1.52B | 839.35M | 1.6B | 1.65B | 1.51B | 1.45B | 1.52B |
| OpEx % of Revenue | 51.74% | 58.33% | 61.16% | 61.84% | 59.02% | 62.92% | 58.1% | 55.93% | 54.21% | 55.6% | 61.78% | 58.61% | 56.1% | 53.69% | 53.11% | 50.76% | 53.53% | 54.72% | 52.42% | 52.29% | 52.7% | 53.54% | 52.01% | 84.85% | 53.29% | 94.6% | 90.82% | 86.44% | 83.68% | 82.93% |
| Selling, General & Admin | 2.9B | 2.65B | 2.6B | 2.44B | 2.39B | 2.56B | 2.31B | 2.19B | 2.15B | 2.03B | 2.64B | 2.13B | 1.99B | 1.88B | 2.1B | 1.86B | 1.86B | 1.8B | 1.53B | 1.32B | 1.21B | 1.15B | 975.54M | 872.14M | 750.09M | 0 | 0 | 0 | 0 | 0 |
| SG&A % of Revenue | 46.93% | 45.65% | 46.89% | 46.69% | 45.93% | 56.18% | 45.04% | 44.6% | 45.16% | 43.39% | 56.99% | 46.22% | 45.64% | 45.52% | 49.2% | 46.95% | 49.42% | 47.25% | 45.41% | 47.46% | 47.49% | 47.87% | 46.34% | 48.79% | 47.62% | - | - | - | - | - |
| Research & Development | 296.69M | 289M | 299M | 345M | 356M | 307M | 292M | 246M | 223M | 230M | 222M | 235M | 231M | 171M | 167M | 151M | 155M | 152M | 142M | 120M | 122M | 127.36M | 119.29M | 98.78M | 74.12M | 69.3M | 73.12M | 71.54M | 69.27M | 70.73M |
| R&D % of Revenue | 4.8% | 4.97% | 5.39% | 6.62% | 6.83% | 6.73% | 5.68% | 5.02% | 4.68% | 4.93% | 4.79% | 5.09% | 5.31% | 4.13% | 3.91% | 3.81% | 4.11% | 4% | 4.21% | 4.32% | 4.78% | 5.32% | 5.67% | 5.53% | 4.71% | 4.09% | 4.04% | 4.09% | 4% | 3.86% |
| Other Operating Expenses | 0 | 448M | 205M | 0 | 0 | 0 | 0 | 176M | 202M | 239M | 0 | 191M | 152M | 94M | 0 | 0 | 0 | -2M | 1.55B | 0 | 0 | 0 | 0 | -58.47M | 15.14M | 1.53B | 1.57B | 1.44B | 1.38B | 1.45B |
| Operating Income | 1.01B | 657M | 425M | 315M | 593M | 295M | 815M | 863M | 934M | 801M | 628M | 749M | 810M | 846M | 862M | 920M | 723M | 630M | 493M | 537M | 422M | 317.06M | 321.07M | 242.73M | 225.86M | 214.78M | 178.43M | 209.98M | 269.29M | 311.5M |
| Operating Margin % | 16.27% | 11.31% | 7.66% | 6.04% | 11.38% | 6.47% | 15.86% | 17.6% | 19.6% | 17.16% | 13.55% | 16.22% | 18.62% | 20.45% | 20.19% | 23.22% | 19.17% | 16.57% | 14.63% | 19.32% | 16.54% | 13.24% | 15.25% | 13.58% | 14.34% | 12.67% | 9.85% | 12.01% | 15.54% | 17.01% |
| Operating Income Growth % | 53.02% | 54.59% | 34.92% | -46.88% | 101.02% | -63.8% | -5.56% | -7.6% | 16.6% | 27.55% | -16.15% | -7.53% | -4.26% | -1.86% | -6.3% | 27.25% | 14.76% | 27.79% | -8.19% | 27.25% | 33.1% | -1.25% | 32.27% | 7.47% | 5.16% | 20.37% | -15.02% | -22.03% | -13.55% | 23.07% |
| EBITDA | 1.58B | 1.24B | 952M | 863M | 1.16B | 840M | 1.33B | 1.32B | 1.39B | 1.28B | 1.14B | 1.19B | 1.19B | 1.17B | 1.17B | 1.21B | 1.03B | 917M | 730M | 706M | 602M | 454.39M | 464.29M | 394.78M | 313.67M | 293.94M | 266.27M | 291.97M | 336.74M | 384.29M |
| EBITDA Margin % | 25.57% | 21.29% | 17.16% | 16.55% | 22.18% | 18.42% | 25.94% | 26.86% | 29.25% | 27.39% | 24.58% | 25.73% | 27.44% | 28.28% | 27.35% | 30.49% | 27.44% | 24.13% | 21.67% | 25.4% | 23.59% | 18.97% | 22.05% | 22.08% | 19.91% | 17.34% | 14.7% | 16.7% | 19.44% | 20.99% |
| EBITDA Growth % | 27.7% | 29.94% | 10.31% | -25.35% | 37.62% | -36.98% | 1.21% | -5.52% | 8.99% | 12.29% | -4.12% | -0.5% | 2.05% | 0.17% | -3.31% | 16.71% | 12.87% | 25.62% | 3.4% | 17.28% | 32.49% | -2.13% | 17.61% | 25.86% | 6.71% | 10.39% | -8.8% | -13.29% | -12.37% | 22.27% |
| D&A (Non-Cash Add-back) | 574.34M | 580M | 527M | 548M | 563M | 545M | 518M | 454M | 460M | 478M | 511M | 439M | 384M | 324M | 306M | 288M | 312M | 287M | 237M | 169M | 180M | 137.33M | 143.21M | 152.05M | 87.81M | 79.16M | 87.84M | 82M | 67.45M | 72.78M |
| EBIT | 1.01B | 657M | 429M | 326M | 679M | 321M | 818M | 852M | 946M | 1.13B | 622M | 759M | 823M | 1.1B | 867M | 977M | 712M | 635M | 493M | 537M | 506M | 180M | 205M | 242.85M | 225.86M | 315.64M | 270.65M | 222.52M | 272.6M | 323.15M |
| Net Interest Income | -128.3M | -149M | -105M | -66M | -74M | -56M | -55M | -51M | -61M | -62M | -39M | -23M | -7M | 2M | -21M | -25M | -40M | -66M | -24M | 16M | 2M | 2M | -9M | 0 | 0 | -10.46M | 5.5M | -2.82M | -6.45M | -9.76M |
| Interest Income | 28.07M | 19M | 34M | 14M | 6M | 6M | 10M | 8M | 6M | 6M | 11M | 13M | 14M | 11M | 4M | 3M | 2M | 5M | 10M | 19M | 27M | 32.22M | 19.64M | 0 | 0 | 6.57M | 16.66M | 13.45M | 14.22M | 7.36M |
| Interest Expense | 156.36M | 168M | 139M | 80M | 80M | 62M | 65M | 59M | 67M | 68M | 50M | 36M | 21M | 9M | 12M | 18M | 42M | 71M | 40M | 9M | 18M | 13M | 10.71M | 20.46M | 0 | 17.03M | 11.16M | 16.27M | 20.66M | 17.13M |
| Other Income/Expense | -224.52M | -159M | -135M | -80M | -7M | -49M | -72M | -82M | -55M | 261M | -69M | -35M | -8M | 246M | -21M | -25M | -53M | -66M | -24M | 13M | 6M | 2M | -132.07M | 43.83M | -15.58M | 174.52M | 5.49M | 683K | -17.36M | -5.48M |
| Pretax Income | 780.82M | 498M | 290M | 235M | 586M | 246M | 743M | 781M | 879M | 1.06B | 559M | 714M | 802M | 1.1B | 848M | 895M | 670M | 564M | 469M | 550M | 428M | 345.83M | 410.89M | 290.73M | 210.28M | 396.1M | 294.58M | 223.26M | 251.93M | 306.02M |
| Pretax Margin % | 12.64% | 8.57% | 5.23% | 4.51% | 11.24% | 5.39% | 14.46% | 15.93% | 18.45% | 22.75% | 12.06% | 15.46% | 18.43% | 26.59% | 19.86% | 22.59% | 17.76% | 14.84% | 13.92% | 19.79% | 16.77% | 14.44% | 19.52% | 16.26% | 13.35% | 23.37% | 16.26% | 12.77% | 14.54% | 16.71% |
| Income Tax | 154.36M | 86M | 27M | 12M | 62M | -202M | 143M | 118M | 112M | 278M | 149M | 213M | 246M | 371M | 266M | 280M | 198M | 187M | 153M | 156M | 126M | 85.55M | 146.43M | 105.98M | 93.2M | 86.18M | 125.05M | 67.72M | 63.98M | 99.33M |
| Effective Tax Rate % | 19.77% | 17.27% | 9.31% | 5.11% | 10.58% | -82.11% | 19.25% | 15.11% | 12.74% | 26.18% | 26.65% | 29.83% | 30.67% | 33.73% | 31.37% | 31.28% | 29.55% | 33.16% | 32.62% | 28.36% | 29.44% | 24.74% | 35.64% | 36.45% | 44.32% | 21.76% | 42.45% | 30.33% | 25.39% | 32.46% |
| Net Income | 626.46M | 412M | 263M | 223M | 524M | 448M | 600M | 663M | 767M | 784M | 410M | 501M | 556M | 729M | 582M | 615M | 472M | 377M | 316M | 745M | 333M | 290.01M | 264.46M | 184.75M | 188.72M | 309.92M | 169.54M | 155.53M | 187.96M | 206.7M |
| Net Margin % | 10.14% | 7.09% | 4.74% | 4.28% | 10.05% | 9.82% | 11.68% | 13.52% | 16.1% | 16.79% | 8.85% | 10.85% | 12.78% | 17.62% | 13.63% | 15.52% | 12.51% | 9.92% | 9.38% | 26.81% | 13.05% | 12.11% | 12.56% | 10.33% | 11.98% | 18.29% | 9.36% | 8.89% | 10.85% | 11.29% |
| Net Income Growth % | 52.05% | 56.65% | 17.94% | -57.44% | 16.96% | -25.33% | -9.5% | -13.56% | -2.17% | 91.22% | -18.16% | -9.89% | -23.73% | 25.26% | -5.37% | 30.3% | 25.2% | 19.3% | -57.58% | 123.72% | 14.82% | 9.66% | 43.15% | -2.11% | -39.11% | 82.81% | 9% | -17.25% | -9.07% | 18.59% |
| Net Income (Continuing) | 626.46M | 412M | 263M | 223M | 524M | 448M | 600M | 663M | 767M | 784M | 410M | 501M | 556M | 721M | 575M | 615M | 472M | 377M | 316M | 394M | 302M | 122M | 133M | 180.65M | 117.08M | 127.09M | 151.24M | 155.5M | 187.96M | 206.7M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.44 | 0.94 | 1.20 | 0.50 | 1.20 | 1.02 | 1.36 | 1.52 | 1.76 | 1.76 | 0.92 | 1.12 | 1.22 | 1.62 | 1.30 | 1.38 | 1.06 | 0.84 | 0.68 | 1.58 | 0.70 | 0.56 | 0.56 | 0.19 | 0.20 | 0.30 | 0.18 | 0.17 | 0.20 | 0.22 |
| EPS Growth % | 53.19% | -21.67% | 140% | -58.33% | 17.65% | -25% | -10.53% | -13.64% | 0% | 91.3% | -17.86% | -8.2% | -24.69% | 24.62% | -5.8% | 30.19% | 26.19% | 23.53% | -56.96% | 125.71% | 25% | 0% | 194.74% | -5% | -33.33% | 66.67% | 5.88% | -15% | -9.09% | 15.79% |
| EPS (Basic) | 1.46 | 0.94 | 1.20 | 0.50 | 1.20 | 1.02 | 1.38 | 1.52 | 1.76 | 1.76 | 0.92 | 1.12 | 1.24 | 1.62 | 1.30 | 1.38 | 1.06 | 0.86 | 0.68 | 1.58 | 0.72 | 0.56 | 0.56 | 0.20 | 0.20 | 0.30 | 0.19 | 0.17 | 0.20 | 0.22 |
| Diluted Shares Outstanding | 436.47M | 438.3M | 218.44M | 437.55M | 438.86M | 437.55M | 437.55M | 437.55M | 437.55M | 446.47M | 436.45M | 449.73M | 453M | 450.5M | 447.5M | 444.5M | 442.78M | 445M | 464M | 472M | 471.5M | 470.5M | 468M | 477.12M | 464.78M | 437.55M | 437.55M | 455.17M | 455.33M | 452.06M |
| Basic Shares Outstanding | 433.42M | 438.3M | 217.75M | 437.55M | 438.5M | 437.55M | 437.55M | 437.55M | 437.55M | 444.95M | 437.55M | 446.5M | 450.5M | 448.5M | 445.5M | 444M | 441.95M | 443M | 461.5M | 470.5M | 465M | 467.5M | 465M | 462.84M | 460.5M | 437.55M | 437.55M | 454.09M | 454.1M | 452.06M |
| Dividend Payout Ratio | 52.8% | 79.37% | 124.33% | 146.64% | 62.79% | 73.21% | 53% | 48.42% | 35.07% | 35.59% | 66.34% | 49.9% | 42.99% | 25.51% | 25.09% | 21.46% | 25.42% | 28.91% | 33.23% | 12.89% | 27.33% | 16.21% | 17.02% | 37.94% | 32.41% | 229.59% | - | - | - | - |
Margin compression from competition
As reported in recent financial statements, Smith & Nephew achieved a 7.0% revenue growth rate by 2025Q4, signaling a steady recovery in elective procedure volumes that suggests the company is successfully navigating the competitive landscape while maintaining its core market position across its three primary operating segments.
The acceleration in top-line growth from 3.4% in 2024Q2 to 7.0% by the end of 2025 suggests that the company's focus on clearing surgical backlogs is yielding tangible results. Investors should monitor whether this growth is sustainable or merely a reflection of temporary post-pandemic volume normalization in the orthopaedics segment.
Based on reported figures, the company's gross margin experienced a notable contraction to 65.6% in 2025Q4, down from historical peaks near 71%, which may indicate intensifying pricing pressure or shifts in product mix that could challenge the firm's long-term ability to maintain its premium pricing power.
The decline in gross margin suggests that competitive headwinds, potentially from peers like Stryker, are forcing the company to sacrifice pricing to maintain volume. This trend warrants further investigation into whether the shift toward cementless implants is successfully offsetting the margin erosion seen in traditional reconstruction and trauma lines.
According to recent SEC filings, the operating margin reached 17.9% in 2025Q4, yet the persistent reliance on high SG&A spending relative to gross profit suggests that the company has struggled to achieve the operational efficiency gains typically expected from a firm of its scale and market presence.
The high SG&A-to-revenue ratio implies that the company's direct sales force model remains a significant drag on profitability. Unless management can demonstrate a clear path to scaling revenue without a commensurate increase in clinical support costs, operating margins may remain capped below the levels of more efficient U.S.-based peers.
As indicated by the income statement data, the company's net income has been subject to significant volatility, with EPS jumping to 0.76 in 2025Q4, a trend that appears heavily influenced by the timing of non-recurring restructuring charges and the ongoing execution of the firm's 12-Point Plan.
The frequent appearance of restructuring costs suggests that the company is in a constant state of operational realignment, which complicates the assessment of true underlying earnings power. Investors should be wary of treating these periodic earnings spikes as indicative of sustainable profitability until the cost base stabilizes.
Quick answers to the most common questions about buying SNN stock.
For fiscal year 2025, Smith & Nephew plc (SNN) reported total revenue of $6.18B. This represents a 237.4% increase compared to $1.83B in 1996.
Smith & Nephew plc (SNN) is profitable, generating $626.5M in net income for the fiscal year ending 2025 with a net profit margin of 10.1%.
Smith & Nephew plc (SNN) reported an operating income of $1.01B, resulting in an operating profit margin of 16.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Smith & Nephew plc (SNN) generated $4.20B in gross profit for the year, representing a gross profit margin of 68.0%. This demonstrates the company's core pricing power and production efficiency.